Bears Take Over MGT Capital Investments Inc. (OTCMKTS:MGTI)

Bears Take Over MGT Capital Investments Inc. (OTCMKTS:MGTI)


MGT Capital Investments Inc. (OTCMKTS:MGTI) fell another 6% today as bitcoin volatility plays out in stocks tied to the cryptocurrency giant. Overall, MGTI is having a strong year (+205%) even with some increased volatility. MGTI has added a substantial $1.50 in price since the start of the year and volume has been stronger over the last 6-months on average.

Furthermore, MGTI has seen increasing revenues from mining operations.  Robert Ladd, President and CEO of MGTI said, “October revenues came in at approximately $400,000 with 865 mining rigs in operation. While power availability (in large part caused by unprecedented demand from the emergent Ethereum market) has delayed our deployment, we have sourced sufficient power to accommodate the 170 rigs not yet deployed, as well as the 3,650 rigs to be delivered over the next several weeks.” With this tease of improving power and mining, it will be interesting to see what MGTI can do moving forward. The company has pulled back from highs in late August but has started to rally back.

MGT Capital Investments Inc. (OTCMKTS:MGTI) is in the process of acquiring a diverse portfolio of cybersecurity technologies and ramping up its Bitcoin mining operations in the state of Washington.

In short, MGTI focuses on acquiring and developing a portfolio of cybersecurity technologies. It intends to address various cyber threats through protection technologies for mobile and personal tech devices, as well as corporate networks.

MGTI also engages in bitcoin mining operation and recently ramped up its Ethereum mining operations as well. MGT Capital Investments, Inc. was founded in 1979 and is headquartered in Durham, North Carolina.

According to MGTI: “With facilities in WA state, MGT Capital Investments, Inc. (MGTI) ranks as one of the largest U.S. based Bitcoin miners. Further, the Company continues to focus on an expansion model to grow its crypto assets materially. The Company is also developing a portfolio of cybersecurity technologies, with industry pioneer John McAfee as its visionary leader, creating advanced protection technologies for mobile and personal tech devices, as well as corporate networks. The Company’s first product, Sentinel, an enterprise class network intrusion detector, is currently in beta testing, with commercial released anticipated by the end of September 2017. The Company also has entered into a joint venture with Nordic IT to develop and market a mobile phone with extensive privacy and anti-hacking features. The Privacy Phone has a tentative release date of February 2018.”

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MGTI has started a hash power expansion drive as it seeks to generate $2 million in monthly revenue assuming continued growth in the price of bitcoin. However, the company’s big plan is to expand its mining operations with 4,700 Bitman Technologies S9 Antimer rig. Such a feat could see the company generate annualized revenue of $25 million and EBITDA of $13 million.

“The effort required to reach our current level is not trivial. The ability to scale our operations requires coordinating the procurement of supply-constrained rigs, massive power requirements, substantial monitoring and controls, and the like. This success is far from a plug and play endeavor. We are very proud of the diligence of the entire MGT team,” said Mr. Stephen Schaeffer.

MGT Capital Investments Inc. (OTCMKTS:MGTI) has a market cap of $101.81M with 48.56 shares outstanding. MGTI has prepaid their electricity and is seemingly ready to go for a hard charge following the Bitcoin craze. Sign-up for continuing coverage on shares of $MGTI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: We hold no position in $MGTI, either long or short, and we have not been compensated for this article.

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